TREASURY

Child Trust Fund

Ruth Kelly: The Child Trust Funds Bill will ensure that every child, whatever their family background, will have access at the age of 18 when they begin their adult life to a stock of assets which they can invest in their future. The child trust fund will also help children and their parents to understand the benefits of saving and investment and how to engage with financial institutions.
	The Government are today publishing draft child trust fund regulations. These draft regulations will be of particular interest to potential providers of the child trust fund.
	The draft regulations include the requirements for a stakeholder child trust fund account. Every child trust fund provider will make a stakeholder account available as one of the investment options. A stakeholder child trust fund account will have its charges capped at 1.5 per cent. per year, and providers will be required to accept all contributions of £10 and above. No charges will apply to transfers between different types of accounts, including from stakeholder to non-stakeholder, and between providers.
	The Government's decision on the charge cap is in the best interests of consumers, as it encourages as wide a selection of providers as possible to offer child trust fund accounts. A large number of providers will encourage competition and ensure the best value for consumers. The Government will continue to monitor that the level of the charge cap best meets the interests of consumers.
	The decision was evidence-based and considered the particular characteristics of the child trust fund. The economics of the child trust fund are very different to other financial products, such as the stakeholder pensions. In particular child trust fund accounts will be smaller in terms of the average size of funds compared to pensions and will have a lower minimum contribution level than other stakeholder products.
	The evidence on which the decision for the cap was based included the report commissioned by the Government from Deloitte, which looked at the trade-offs of different charge caps for providers and consumers. Deloitte's report will be published later this year, at the same time as their report on the other products in the stakeholder suite.
	The minimum contribution for the stakeholder account has been set to ensure the child trust fund is accessible to all savers, including those who cannot commit to regular contributions. Providers will be free to accept lower contributions if they wish and it is expected that competition amongst providers could drive down the minimum amounts accepted.
	The Government will continue to work with the Financial Services Authority on the development of an appropriate regulatory regime.
	Copies of the draft regulations together with an explanatory commentary are available in the Vote Office and the Libraries of the House.

CONSTITUTIONAL AFFAIRS

Criminal Defence Service Cuts

David Lammy: I am today announcing that the Government intend to implement a package of measures which will help achieve better value for money in the Criminal Defence Service (formerly Criminal Legal Aid) while ensuring that help continues to go to those who need it most.
	The package draws upon proposals contained in the consultation paper on the Criminal Defence Service (CDS) "Delivering Value for Money in the Criminal Defence Service", which was published last year. After considering the responses to the consultation we intend to introduce the following changes to the CDS:
	Strengthening the operation of Recovery of Defence Costs Orders (RDCOs);
	Abolishing advocacy assistance for early hearings;
	Restricting the scope of the court duty solicitor scheme to remove access for clients who are not in custody and who are charged with non-imprisonable offences;
	Abolish post-charge advice and assistance in criminal proceedings (except that provided by the court duty solicitor);
	Limiting the provision of free police station advice in certain cases to telephone advice only (with limited exceptions).
	I believe that these changes strike the right balance between ensuring the taxpayer receives good value for money and ensuring that publicly funded legal aid is available to those who need it most. We will of course keep the impact of these proposals under review.

DEPUTY PRIME MINISTER

Making it Happen: The Northern Way

John Prescott: I have published today a second progress report on the £22 billion sustainable communities plan, titled "Making it Happen: The Northern Way". It looks at the successes since the communities plan was published in February 2003, and at the challenges still to come. This follows on from the first statement, published in July 2003 on the Thames gateway and the growth areas.
	The statement reports on the action being taken to regenerate our established urban and rural communities in the north and the midlands. It recognises the new confidence and energy that can be found in many of our northern and midland towns and cities, and seeks to build on this.
	We recognise that establishing sustainable communities in the North is as much about economic growth and employment as it is in the rest of the country. The statement makes clear that the north needs a long-term vision to exploit fully the economic and transport corridors connecting it—a "Northern Way", which looks east to west as well as north to south.
	This idea of a northern way—a bold vision that exploits the economic and transport corridors that bind the north—is an example of the new ways of thinking that we need to tap the potential of the north.
	We are convinced of the potential for an economic renaissance in the north, and we have pledged to work with the RDAs and the regional planning bodies to develop this vision, together with other key partners. This is alongside the other work that the Government is already doing to improve the relative economic performance of the north.
	The report I am launching today offers a vision for renewal and growth that will bring the jobs, investment and renewed housing that can create truly sustainable communities across the northern regions.
	We are working to revive communities, renew the homes and rebuild the streets in the areas most affected by abandonment and decay. I am announcing today that the Merseyside market renewal pathfinder will receive £86 million and that NewcastleGateshead market renewal pathfinder will receive £69 million until March 2006 to help tackle the terrible problems caused by low demand. This is in addition to an allocation of £4 million each for an early action programme.
	By March 2006, Merseyside expects to deliver: the demolition of over 2,700 redundant and obsolete homes, the refurbishment of 325 homes, over 1,600 new homes built and the widespread delivery of additional management measures designed to overcome the problems of low demand.
	By March 2006, NewcastleGateshead expects to deliver: the demolition of almost 2,000 redundant and obsolete properties, 100 new homes built, over 2,000 homes refurbished, and around seven hectares of land acquired for potential later development
	Other announcements today include:
	27 pilot areas have been identified to receive a share of the £89 million Liveability Fund, and these are listed in the progress report. This will help them develop innovative models for delivering a high quality local environment.
	We are creating a sixteenth Urban Regeneration Company in Gloucester. Initial targets are to provide 3,000 new homes and 2,000 new jobs and to attract up to £400 million of private sector investment over 10 years.
	We are also providing funding to support the creation of a Regional Centre of Excellence in every region. These will be used to improve the skills of people involved in the delivery of sustainable communities.
	We will be holding a "Creating Sustainable Communities Summit" in Manchester at the start of 2005, following on from the successful Urban Summit in 2002.
	The statement includes examples of the excellent work being done by our delivery partners—such as local authorities, English Partnerships, the regional development agencies, the Housing Corporation and urban regeneration companies—and of how we can work together in future to deliver a step change in sustainable communities.
	I am also publishing today nine regional annexes, providing short progress reports on the delivery of the sustainable communities plan in each English region.
	Copies of "Making it Happen: The Northern Way" and the regional annexes have been sent to all English Members. Further copies of the report and annexes are available in the Libraries of both Houses, and on the website of The Office of the Deputy Prime Minister at: www.odpm.gov.uk/communities.

London-Stansted-Cambridge Growth Area

Yvette Cooper: I am today announcing the extension of the London-Stansted-Cambridge growth area to include Peterborough, and all of Cambridgeshire.
	This takes account of the important role and potential of Peterborough in contributing to growth as part of the London-Stansted-Cambridge growth area, and the work of the Regional Planning Panel for the East of England in preparing new Regional Planning Guidance.
	It also reflects the important work under way on sustainable housing growth across Cambridgeshire, and particularly through the Cambridge Sub Region Infrastructure Partnership, which includes Fenland, East Cambridgeshire and Huntingdonshire.
	The complete list of local authorities now included in the London-Stansted-Cambridge growth area is:
	Braintree
	Broxbourne
	Cambridge
	East Cambridgeshire
	East Hertfordshire
	Enfield
	Epping Forest
	Fenland
	Hackney
	Haringey
	Harlow
	Huntingdonshire
	North Hertfordshire
	Peterborough
	Redbridge
	South Cambridgeshire
	Stevenage
	Uttlesford
	Waltham Forest